Hi. Hoping someone can help me. I’ve been on LTD for over 2 years receiving LTD from my group plan as well as CPP-D since summer 2020. I’m still considered as employed by my employer. I am wondering if I should resign and if so what legal consequences this may have on my LTD benefits from the group plan. If I do resign I would write a letter that I’m resigning due to my disability. I just worry that they can deny me my LTD. My doctors have indicated that I will not be able to return to any sort of employment.
Employment and your LTD insurance are separate. As long as you are still disabled, your insurance will continue to cover you for the maximum insured period.
The general advice is not to resign. Most people still get some kind of benefits like extended health for drug coverage. Most people also are entitled to statutory pay on termination, you’d be giving that up by resigning. Also sometimes it’s nice to still be able to say you’re an employee, either to just avoid explaining your medical issues or to apply for a new credit card or mortgage.
Thanks Caro. I guess my main concern is that I don’t loose my LTD benefits. My health benefits are all through my wife’s group benefits and as for severance given the nature of the role I had and that it was 100% commissioned I wouldn’t be entitled to severance.
Hi, Caro is correct in that LTD obligations and Employment obligations are usually different. There is usually no advantage to resigning if you are on LTD, unless your plan is to try and return to work somewhere else. Resigning and taking a pension for example, can be a disaster and can cause your LTD to terminate. So, you need to be very careful with resigning. I would recommend a personalized consultation with a lawyer so they can advise on your specific situation. Also, this is a public forum so don’t share too many details about your reasons for wanting to resign, etc.
David Brannen
Disability Lawyer with Resolute Legal
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